Japan has recently announced that India & Bangladesh are now part of its relocation subsidiary. This simply implies that manufacturers from “the land of the rising sun” will now be able to enjoy subsidies when they move production from its old relocation subsidiary buddy, China, to India or Bangladesh.
Before COVID-19, many developed countries around the world were indulging in some kind of business with China, be it manufacturing or service related. Japan was also amongst those countries and Japanese companies were “highly” dependent on Chinese supplies. However, this pandemic made the country realise the importance of diversifying its supply chain and thus, it is now making amends. This relocation subsidiary tie with India & Bangladesh is one of its many steps in diversifying and broadening its supply chain.
METI (Minister of Economy, Trade and Industry) Minister Kajiyama Visits India
In December of 2019, Minister Kajiyama visited India and during the visit met with Minister Piyush Goyal. It is mentioned on the official website of METI that “the two sides exchanged views on cooperation on RCEP and enhancement of India’s industrial competitiveness”. To learn more about the visit, click on the link.